NTG Clarity Networks (NCI) investor relations material

Executive summary

• Achieved 17 consecutive quarters of last twelve months revenue growth, with Q2 2025 revenue up 51% year-over-year to $18.9M, led by offshore services and NTG Apps/NTGapps.

• NTG Apps/NTGapps revenue grew 1600–1688% year-over-year, now 21% of total revenue, driven by increased adoption and customer expansion.

• Offshore software development services revenue increased 89–90% year-over-year, while on-site services declined 16%.

• Strategic hiring and investments in geographic expansion, especially in Iraq and Oman, contributed to higher G&A expenses.

• Net income declined to $0.4M (2% of revenue) from $2.4M (20%) due to FX headwinds and tax provision.

Financial highlights

• Gross margin expanded by 380 basis points to 38%, boosting gross profit by 68% year-over-year to $7.2M.

• Adjusted EBITDA was $2.8M (15% of revenue), down from 23% margin last year, impacted by new hires for future contracts.

• Operating cash flow before working capital was $0.9M; after changes, there was a $2.7M outflow, mainly due to increased accounts receivable and seasonal collection patterns.

• Free cash flow was $(2.7)M in Q2 2025 versus $0.07M in Q2 2024.

• Basic and diluted EPS: $0.01 (Q2 2025) vs. $0.06 (Q2 2024).

Outlook and guidance

• Reaffirmed 2025 revenue guidance of $78M, representing 39-40% year-over-year growth.

• Full-year adjusted EBITDA margin expected in the 16-20% range, with G&A expenses projected to plateau and then decline as new hires become billable.

• Margin improvement anticipated in the second half as new hires become fully billable.

• Anticipates continued strong demand in Saudi Arabia and neighboring Gulf countries, with further expansion planned.

• Strategic focus on expanding client relationships, winning new customers, and increasing NTGapps adoption.